Fewer Workers Covered By Employer-Provided Health Insurance In 2004

The percentage of Americans receiving employment-based health benefits fell in 2004, and the percentage of the population covered by any type of health insurance also declined, according to a study released by the Employee Benefit Research Institute (EBRI).

EBRI researchers analyzed data on rates of health insurance coverage among non-elderly individuals in 2004 from the U.S. Census Bureau’s March 2005 Current Population Survey, and they examined trends in insurance coverage between 1994 and 2004.

Results of the analysis showed the percentage of this population with health insurance coverage fell in 2004 to 82.2%—the lowest level recorded in the 10-year period. The total number of uninsured in 2004 amounted to 45.5 million, the study found, up from 44.7 million in 2003 and 36.5 million in 1994.

The study further indicated that the percentage of the population receiving coverage through an employment-based health plan declined in 2004 to 62.4%, down from 63% in 2003 and the 10-year peak of 66.8% in 2000. Meanwhile, the percentage of individuals who were covered by public programs rose to 17.5% in 2004, up from 16.8% in 2003 and a low for the period of 14.3% in 1999. Researchers observed that, while growth in employment-based coverage exceeded that of public programs between 1994 and 2000, the trend was reversed between 2000 and 2004, largely due to the weaker economy and the rising cost of providing health benefits.

Generally, the study found, the types of individuals most likely to have had employment-based health benefits in 2004 were full-time, full-year employees; public sector employees; workers in the manufacturing, managerial, and professional sectors; and individuals living in high-income families. The categories of workers least likely to have received health benefits from their employers included those working in service occupations and part-time or seasonal employees.

While nearly 71% of workers were shown to have employment-based health benefits in 2004, just 39.8% of non-workers had employer-provided coverage. Results further indicated that 72.7% of individuals in families headed by full-year, full-time workers had employment-based health benefits, compared with 39.2% of those in families headed by other types of workers and 20.8% of individuals in families headed by non-workers.